Mobile system and method for payments and non-financial transactions

Abstract

A method and system for mobile commerce, communication, and transaction processing to real-world POS, web, e-commerce, virtual terminal, mobile personal digital assistant, mobile phone, mobile device, or other computer based transactions involving either one or both financial and non-financial such as loyalty based transactions as a mobile payment system is described. One embodiment comprises using a mobile phone via a consumer mobile software application (CMA) in lieu of a consumer card (examples include physical, virtual, or chips) to conduct payment transactions in the Real or Virtual World of commerce. An embodiment is related to making payments to real-world stores via having the CMA on a mobile device on behalf of the consumer present to conduct transactions and no physical card required.

Description

CROSS-REFERENCE TO RELATED APPLICATIONS[0001]This application claims priority to U.S. Provisional Application No. 61 / 399,793, filed on. Jul. 19, 2010 and to U.S. Provisional Application No. 61 / 344,563, filed on Aug. 23, 2010, which are incorporated herein by reference in their entireties.TECHNICAL FIELD[0002]The present invention relates generally to mobile systems and methods for payments and non-financial transactions.DESCRIPTION OF THE RELATED ART[0003]An emerging technology in the industry of payment processing is mobile payments. Mobile payments addresses many needs including offering greater convenience to consumers through eliminating the use of plastic cards, stickers, or key tags that use magnetic-striped, radio frequency identification (RFID), barcodes, blue tooth, or chips to store and transmit payment account data to authorize and conduct payment transactions at point of sale terminals. Current mobile payment solutions might include the use of near-field communication (N...

AI Technical Summary

Benefits of technology

[0010]In view of the above-identified drawbacks, there exists a need for an alternative mobile commerce system and method. Embodiments of the present invention provide systems and methods for mobile commerce, communication, and transaction processing to real-world POS, web, E-commerce, virtual terminal, mobile PDA, mobile phone, or other computer based transactions involving either financial and / or non-financial transactions (such as loyalty based transactions) as a mobile payment system. Some embodiments of the invention provide a more readily available product for market adoption through a highly secure, non-card data transmitting POS process. Such a product provides a relatively low cost solution to implement at the merchant, and is a scalable product for ease of distribution to address both consumer and merchant adoption needs.

[0019]Another illustrative embodiment includes the TID (terminal identifier) as a number posted in the form of either an adhesive sticker adhered to the merchant's terminal or location nearby that the consumer either scans as a barcode version or enters in a numeric value representing the TID. The barcode version of the TID can be a standard or 2D barcode such as a QR (Quick Response) code that is scanned by the consumer's mobile device through the use of a camera on the mobile device. Another illustrative embodiment allows the TID to be represented by the use of a two-factor authentication token device (such as might be supplied by RSA, the security division of EMC), whereby a code is generated according to an algorithm set by the device and displayed by the merchant at the POS to allow the consumer to enter in the code into the CSA.

[0020]Another illustrative embodiment of this invention from the merchant's perspective allows the merchant to use a merchant mobile payment card with a magnetic stripe or NFC equipped card to initiate the mobile payment system transaction. This solution allows the merchant to participate in mobile transactions without POS interface hardware upgrades (such as NFC and Bluetooth), use of barcodes, SMS text messaging, or software (such as Mocapay's authorization code software), and still affords the consumer the convenience of paying by phone and not sharing their financial data with the merchant or storing it on the phone. The merchants also gain by not obtaining the consumer's sensitive financial data that becomes a responsibility and liability of the merchant. The mobile payment system transaction is initiated by swiping the merchant's mobile payment card through the merchant's existing payment terminal or POS when prompted by the consumer's announcement to conduct a mobile payment system transaction. The merchant receives a standard confirmation of successful payment or error code at their existing POS as is already programmed to handle. This process is accomplished by utilizing an IIN to route transactions through the merchant POS, middleware software provider, frontend switch, gateway, processor, payment network, or backend switch.

[0029]Another illustrative embodiment entails allowing a consumer to utilize the CMA to access an ATM (Automated Teller Machine, Cash Point, or Cash Machine) used for consumer financial transactions including obtaining cash withdrawals or making cash deposits. The CMA obviates the need and use of an issuer's magnetic card for account access and authorization as the necessary card account information is stored in the e-wallet of the mobile payment system. The ATM only requires a button added prior to conducting any transaction for mobile ATM transactions. The button replaces the card swipe fun on and otherwise allows the ATM to behave in a similar fashion as it is customarily used.

Problems solved by technology

Each solution has significant unique setbacks for merchant and consumer adoption.

An NFC solution could increase risk as the ability to intercept in-transit data is greatly increased when the medium of exchange is no longer limited to a magnetic card swipe and instead broadened by the use of radio technology.

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